Moody’s upgrades DR credit rating

Moody’s upgrades DR credit rating.

Moody’s has upgraded the Dominican Republic’s long-term local and foreign-currency credit ratings to Ba2 from Ba3, with a stable outlook. The upgrade reflects the country’s strong economic growth averaging 5% annually over 15 years, diversification, and improvements in institutional quality and fiscal policy, including a new Fiscal Responsibility Law. Tourism, foreign direct investment, and remittances have bolstered the external position and foreign-exchange reserves.

Despite these strengths, challenges remain, including a narrow revenue base (16% of GDP), weak debt affordability, and high foreign-currency exposure. The fiscal deficit is expected around 3% of GDP, with debt stabilising near 48%. GDP per capita is US$29,150, with inflation at 3.3% in 2024.